The Social Security Administration (SSA) sends monthly payments to Supplemental Security Income (SSI) recipients, as well as benefits for workers who have chosen to retire. However, it has been reported that next year there will be an increase in payments. Along those lines, many are wondering what Social Security payments will look like in 2023. Here are the details.
It is worth mentioning that each year, the SSA regulates the cost-of-living adjustment (COLA), based on which the payments that will be sent monthly are calculated. The COLA is calculated taking into account inflation so as not to affect the purchasing power of the beneficiaries; therefore, the higher the inflation, the higher the adjustment and, therefore, the monthly payments increase.
According to the most recent inflation report from the U.S. Department of Labor, in May, inflation registered a new historical record: 8.6%. In that sense, and taking into account that the high rates are maintained, the SSA estimates that monthly payments could increase by 8% by 2023.
What will Social Security payments look like in 2023?
This 2022, thanks to a 5.9% increase to the cost-of-living adjustment, average payments for retired individuals increased to $1,657 per month, while married couples receive an average of $2,753, but what will payments look like in 2023 with an 8% increase? How much will each beneficiary collect?
If in October, the month in which the Social Security Administration releases next year’s COLA, an 8% increase is announced, average payments for 2023 would look like this: